Savings is the practice of putting money aside for a purpose and it is a very important tool required on your journey to wealth creation even though saving in itself is not enough to attain financial freedom. A lot of people talk about savings but really do not pay attention to some interesting facts about savings. Here are some interesting facts you should know about savings.
1]: Savings Is A Habit- For you to save money successfully you need to see savings as a habit and intentionally form that habit of setting money aside. When you start out on it and keep doing it regularly and consistently it becomes a habit. When it is not a habit it becomes difficult to practice.
2]: Incessant Spending Is An Enemy Of Saving- One of the major enemies of spending in continuous and non-stop spending. It is impossible to spend incessantly and expect to save money regularly. You need to do away with incessant spending if you must save.
3]: We Can All Learn To Save- A lot of people do not save because they feel they do not have what it takes to save, the truth is that nobody was born with a unique ability to save money. We all learn to save and we can start by saving little till we master the habit of saving.
4]: Saving Is Not Complete In Itself- As good as saving is it is still not complete in itself. Savings must be backed up by investment for it to be beneficial because if you save a penny it is still a penny or even less than a penny in another few months, no thanks to the effect of inflation. But when you save and invest, it becomes beneficial and sufficient to secure your financial future.
Of what use is it to save and have the value of your savings reduced as a result of inflation? If you must maximize your savings, then you need to back it up with investment that will not only guarantee you returns but also increase the value of your investment by up to 20 to 40 percent returns monthly.
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